Forex News – Sterling falls as UK deficit larger than expected
September 26, 2013 9:24 am
Sterling tumbled against the dollar and the euro in early London session trading on Thursday after the release of UK data on Final GDP and trade balance.
According to a report from the UK Office for National Statistics, GDP rose to 0.7 percent in the second quarter which was in line with expectations.
Meanwhile, on a yearly basis, the report showed however that GDP rose 1.3 percent in the second quarter, compared to expectations for a 1.5 percent increase.
In a separate report, the UK second-quarter current account deficit was more than forecast.
The deficit did not narrow as much as expected and the current account came in at £13 billion from a deficit of £21.8 billion in the last quarter.
Analysts had expected the current account deficit to narrow to £12 billion in the second quarter.
GBPUSD fell to $1.6035 after the data at 9:30 am London time from a pre-data session high of $1.6094. That’s a 60-pip loss.
Sterling tumbled against the dollar and the euro in early London session trading on Thursday after the release of UK data on Final GDP and trade balance.
According to a report from the UK Office for National Statistics, GDP rose to 0.7 percent in the second quarter which was in line with expectations.
Meanwhile, on a yearly basis, the report showed however that GDP rose 1.3 percent in the second quarter, compared to expectations for a 1.5 percent increase.
In a separate report, the UK second-quarter current account deficit was more than forecast.
The deficit did not narrow as much as expected and the current account came in at £13 billion from a deficit of £21.8 billion in the last quarter.
Analysts had expected the current account deficit to narrow to £12 billion in the second quarter.
GBPUSD fell to $1.6035 after the data at 9:30 am London time from a pre-data session high of $1.6094. That’s a 60-pip loss.
EURGBP rose to 84.21 pence from 83.93 pence.
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